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Marketing, a rewarding investment

Marketing is an investment not an expense:

Surely not! Marketing is an expense! …. Well yes …but NO. I will explain.

Let’s have a look at an expense. Paper clips, yes let’s buy paper clips as an example. Great invention, keeps everything tidy but beyond this does it give your business a return? Does it create sales on its own? Well, no it doesn’t.

Ok let’s try something bigger, more essential, a whole department, say accounts or operations. Yep both essential to the business, you can’t get paid if you don’t raise and invoice and collect in the money, or if you don’t deliver the goods on time.

But, all of the above are expenses. They’re costs of doing business.

I hear you cry…”placing an add is a cost”, “running a direct mailing campaign is a cost”. Yes true, but totally different.

A different mind set needs to be formed about these “expenses”. The Marketing “expense” creates new customers, without which we have no turnover for our accounts to bill for, or any products for our operations to deliver.

Therefore we are left with no other conclusion, Marketing is an investment. One that has a measurable return.

Don’t agree or have more to add?

Thanks again for your valuable time, Tim

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  1. August 16, 2010 at 4:35 am

    Marketing is an expense when it produces nothing, or it’s results can’t be measured. Marketing is an investment when it shows conversion. Marketing is a no-brainier when it produces a net gain.

    Good Hunting.

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